Fitness Facilities Survey Results For First Half Of 2011

2011 Six Months (JAN-‐JUN) Fitness Facilities
Business Results Survey Report

A first 6 months of 2011 from a survey conducted by FITNESS BUSINESS
COUNCILTM in July, 2011. Detailed
business can be obtained by contacting Michael Scott Scudder at michaelscottscudder@yahoo.com or by
telephoning Michael at 575-‐751-‐4220. There is a nominal coaching fee for detailed information. All rights
reserved by Michael Scott Scudder. Any re-‐publication, distribution and/or use of the materials, statistics
and presentations in this report are prohibited without the express prior written consent of the author.

TABLE OF CONTENTS

PAGE 1: TITLE PAGE PAGE 17: PRICE POINTS: HIGH PRICE ($50-‐$69 MONTHLY)
PAGE 2: TABLE OF CONTENTS PAGE 18: PRICE POINTS: LUXURY PRICE ($70+ MONTHLY)
PAGE 3: HOW TO USE THIS REPORT EFFECTIVELY PAGE 19: MEMBERSHIPS: 4,000+ MEMBERS
PAGE 4: THE SURVEY: RESPONSES (1) PAGE 20: MEMBERSHIPS: 3,000-‐3,999 MEMBERS
PAGE 8: FOR-‐PROFIT RESPONSES RESULTS PAGE 24: MEMBERSHIPS: 1,000-‐1,499 MEMBERS
PAGE 9: NOT-‐FOR-‐PROFIT RESPONSES RESULTS PAGE 25: MEMBERSHIPS: 500-‐999 MEMBERS
PAGE 10: SEGMENT: 35,000FT2+ FACILITIES PAGE 26: MEMBERSHIPS: UNDER 500 MEMBERS
PAGE 11: SEGMENT: 20,000 TO 34,999FT2 FACILITIES PAGE 27: SMALL STUDIOS: DON T SELL MEMBERSHIPS
PAGE 12: SEGMENT: 10,000 TO 19,999FT2 FACILITIES PAGE 28: COMMON ATTRIBUTES OF HIGH-‐PROFIT CLUBS
PAGE 13: SEGMENT: 5,000 TO 9,999FT2 FACILITIES PAGE 29: COMMON ATTRIBUTES OF STRONG-‐PROFIT CLUBS
PAGE 14: SEGMENT: UNDER 5,000FT2 FACILITIES PAGE 30: COMMON ATTRIBUTES OF GOOD-‐PROFIT CLUBS
PAGE 15: PRICE POINTS: LOW PRICE (UNDER $30 MONTHLY) PAGE 31: COMMON ATTRIBUTES OF BREAKEVEN/MONEY-‐
PAGE 16: PRICE POINTS: MODERATE PRICE ($30-‐$49 LOSING CLUBS
MONTHLY) PAGE 32: COMMENTS FROM MICHAEL

2

Tips on how to use this report most effectively for your company:

REVIEW PAGES 4-‐7 FIRST, THEN EITHER PAGE 8 (FOR-‐PROFIT RESPONSES) OR PAGE 9 (NOT-‐FOR-‐PROFIT RESPONSES)
NEXT, REVIEW PAGES 28-‐31 (ATTRIBUTES OF PROFITABLE CLUBS AND BREAKEVEN/MONEY-‐LOSING CLUBS)
THEN REVIEW PAGE 32 (OVERALL SUMMARY OF MEMBERSHIP PRICES, INITIATION FEES, MEMBERSHIP SALES,
RETENTION, ANCILLARY INCOME, NET PROFITS, UNBUNDLING MEMBERSHIPS, OPERATORS SENTIMENT, OPERATORS
CONFIDENCE, PRICING CONFIDENCE AND PROFIT CONFIDENCE)

NEXT DETERMINE THE BENCHMARKS/METRICS FOR YOUR CLUB.
FOR EXAMPLE, IF YOUR CLUB IS 22,000 FT2 WITH A SINGLE MEMBERSHIP MONTHLY PRICE POINT OF $39
AND 2,600 MEMBERS:
PAGE 11: 20,000 TO 34,999FT2 FACILITIES
PAGE 16: MODERATE PRICE ($30-‐$49 MONTHLY)
PAGE 21: MEMBERSHIPS (2,500-‐2,999)

BY FOLLOWING THE ABOVE STEPS, YOU WOULD HAVE COMPLETE COMPARATIVE BENCHMARK/METRIC SNAPSHOTS OF
CLUBS OF YOUR PARTICULAR SIZE, PRICE AND MEMBERSHIP.

3

The Survey: Responses (1)
THE SURVEY WAS DEPLOYED FOR 3 WEEKS IN JULY, 2011
USING ICONTACTTM AN ONLINE SURVEY TOOL
LICENSED TO MR. SCUDDER.

TOTAL RESPONSES RECEIVED REPRESENTED 495 U.S. AND
14 CANADIAN FITNESS FACILITIES.
80% RESPONSE FROM FOR-‐PROFIT FACILITIES.
20% RESPONSE FROM NOT-‐FOR-‐PROFIT FACILITIES.

89% OF RESPONDENTS ARE DECISION-‐MAKERS WITH
KNOWLEDGE OF AND ACCESS TO COMPANY BUDGETS AND
P&LS.
OWNER AND/OR PARTNER; GENERAL MANAGER OR CLUB MANAGER;
EXECUTIVE DIRECTOR OR ASSISTANT DIRECTOR; REGIONAL MANAGER OR DIRECTOR

4

MONTHLY PRICES.
AVERAGE MONTHLY PRICE: $49.
MEDIAN MONTHLY PRICE: $45.

INITIATION FEES.
AVERAGE INITIATION FEE: $49.
MEDIAN INITIATION FEE: $40.

PERCENTAGE ANCILLARY INCOME/GROSS REVENUES.
30% AND HIGHER: 31% OF RESPONDENTS
25% TO 29.9%: 13% OF RESPONDENTS
LESS THAN 5%: 7% OF RESPONDENTS

5

NET PROFIT BEFORE TAXES (NOT EBITDA GROSS INCOME LESS
GROSS EXPENSES).
20% AND HIGHER: 14% RESPONDENTS
15% TO 19.9%: 11% RESPONDENTS
BREAKEVEN: 12% RESPONDENTS
UNPROFITABLE: 16% RESPONDENTS

AVERAGE NET PROFIT: 8%
MEDIAN NET PROFIT: 6%

HAVE SWITCHED TO UNBUNDLED OR A LA CARTE
MEMBERSHIP PRICING: 25% RESPONDENTS

IF ECONOMY STAYS SAME FOR ANOTHER 12 MONTHS:
MONTHLY PRICES WILL BE SUBSTANTIALLY LOWER: 5% RESPONDENTS
MONTHLY PRICES WILL BE SLIGHTLY LOWER: 22% RESPONDENTS
MONTHLY PRICES WILL BE ABOUT THE SAME: 68% RESPONDENTS
MONTHLY PRICES WILL BE SLIGHTLY HIGHER: 5% RESPONDENTS

6

1 YEAR FROM NOW (SUMMER 2012), FITNESS BUSINESSES IN YOUR
MARKETPLACE:
WILL BE SUBSTANTIALLY OR SLIGHTLY WEAKER: 20% RESPONDENTS
WILL BE ABOUT THE SAME: 50% RESPONDENTS
WILL BE SUBSTANTIALLY OR SLIGHTLY STRONGER: 30% RESPONDENTS

LOW PRICES WILL TAKE OVER THE MAJORITY OF HEALTH CLUB MARKETS:
YES, BIG-‐TIME: 12% RESPONDENTS
YES, SLIGHTLY: 54% RESPONDENTS
EVERYTHING WILL BE ABOUT THE SAME: 17%
NO, SLIGHTLY: 13% RESPONDENTS
NO, NOT AT ALL: 4% RESPONDENTS

3 YEARS FROM NOW (SUMMER 2014), THE HEALTH CLUB INDUSTRY:
WILL BE IN WORSE PROFIT SHAPE THAN IT IS NOW: 7% RESPONDENTS
EVERYTHING WILL BE ABOUT THE SAME AS IT IS NOW: 17%
WILL BE IN BETTER OR SLIGHTLY BETTER SHAPE THAN NOW, BUT NOT WITH
PRE-‐RECESSION PROFITS: 71% RESPONDENTS
WILL RETURN TO THE PROFIT MARGINS IT ENJOYED PRE-‐RECESSION: 5%
RESPONDENTS

7

The Sectors: For-‐Profit Facilities
PROFITABLE: 76%
BREAKEVEN: 9%
UNPROFITABLE: 15%
MEMBERSHIP SALES UP: 79%
ANCILLARY SALES UP: 80%
MEMBERSHIP RETENTION BETTER: 74%
MEMBERSHIP RETENTION SAME OR WORSE: 26%
MORE COMPETITION: 48%
SAME OR LESS COMPETITION: 52%
DOING BETTER FINANCIALLY 6 MO. 2011 VS. 6 MO. 2010: 80%
DOING SAME/WORSE FINANCIALLY 6 MO. 2011 VS. 6 MO. 2010:
20%
HAVE YOU UNBUNDLED?: 28%

MSS COMMENTARY:
LOWEST PERCENTAGE OF FOR-‐PROFITS OPERATING AT BREAKEVEN OR LOSSES
IN THE LAST 3 YEARS.
MEMBERSHIP RETENTION HAS IMPROVED PROFITABILITY FOR MAJORITY.
KEY HAS BEEN FIRST 6 MONTHS FINANCIAL IMPROVEMENT VERSUS SAME
TIME LAST YEAR.

8

The Sectors: Not-‐For-‐Profit Facilities
PROFITABLE: 41%
BREAKEVEN: 32%
UNPROFITABLE: 27%
DOING FINANCIALLY BETTER 6 MO. 2011 VS. 6 MO. 2010: 91%
DOING FINANCIALLY SAME/WORSE 6 MO. 2011 VS. 6 MO. 2010: 9%

MSS COMMENTARY:
NOT-‐FOR-‐PROFITS IMPROVING MEMBERSHIP SALES AND ANCILLARY SALES;
CONTINUE EXCELLENCE IN RETENTION; BUT BREAKEVEN AND
UNPROFITABILITY IN HIGHER NUMBERS THAN THIS TIME LAST YEAR.
THE SECTORS PERCEPTION OF LOWERED COMPETITION MAY BE INACCURATE.
NEXT 6 MONTHS WILL BE KEY TIME FOR MOST NOT-‐FOR-‐PROFITS.

9

Size Segments: 35,000ft2+ Facilities
PROFITABLE: 82%
BREAKEVEN: 4%
UNPROFITABLE: 14%
DOING BETTER FINANCIALLY 6 MO. 2011 VS. 6 MO. 2010: 91%
DOING SAME/WORSE FINANCIALLY 6 MO. 2011 VS. 6 MO. 2010: 9%

MSS COMMENTARY:
BEST-‐PERFORMING SEGMENT OVERALL IN THE HEALTH CLUB INDUSTRY AT
PRESENT.
KEY FACTOR HAS BEEN FIRST 6 MONTHS FINANCIAL IMPROVEMENT VERSUS
SAME TIME LAST YEAR. MARGINS MOVING BACK UP SLOWLY FOR THE FIRST
TIME IN 3 YEARS.

10

Size Segments: 20,000-‐34,999ft2+ Facilities
PROFITABLE: 65%
BREAKEVEN: 24%
UNPROFITABLE: 11%
DOING FINANCIALLY SAME/WORSE 6 MO. 2011 VS. 6 MO. 2010:
29%

MSS COMMENTARY:
MEMBERSHIP SALES GENERALLY IMPROVED; ANCILLARY SALES AND
RETENTION NEED TO BE STRONGER IN THIS SEGMENT IT S KEY TO
CONTINUED FINANCIAL IMPROVEMENT.
STILL HAVE 1/3 OF CLUBS IN THIS SEGMENT AT BREAKEVEN OR LOSS
OPERATIONAL STATUS.

11

PROFITABLE: 69%
BREAKEVEN: 25%
UNPROFITABLE: 6%

31%

MSS COMMENTARY:
THIS SEGMENT STRUGGLING WITH OVERALL MEMBERSHIP SALES AND
ANCILLARY SALES IMPROVEMENT. MEMBERSHIP RETENTION ON THE
INCREASE, HOWEVER.
A PARTICULAR SEGMENT WITH A LOT OF COMPETITION AND INCREASING
COMPETITION.
STILL HAVE 1/3 OF CLUBS IN THIS SEGMENT AT BREAKEVEN OR LOSS
OPERATIONAL STATUS AND 1/3 THAT ARE NOT DOING BETTER FINANCIALLY.

12

PROFITABLE: 63%
BREAKEVEN: 25%
UNPROFITABLE: 12%
12%

MSS COMMENTARY:
EVEN THOUGH MEMBERSHIP SALES AND ANCILLARY SALES HAVE IMPROVED,
RETENTION IS STILL AN ISSUE FOR 1/3 OF CLUBS IN THIS SEGMENT. KEY TO
CONTINUED FINANCIAL IMPROVEMENT IS RETENTION.
COMPETITION IS HEAVY AND GETTING HEAVIER IN THIS SEGMENT.
STILL HAVE BETTER THAN 1/3 OF CLUBS IN THIS SEGMENT AT BREAKEVEN OR
LOSS OPERATIONAL STATUS.
THIS SEGMENT IS SEEING A DRAMATIC NEGATIVE TURN.
A LOT OF UNBUNDLING IN THIS SEGMENT IS IT WORKING?

13

Size Segments: under 5,000ft2+ Facilities
PROFITABLE: 58%
BREAKEVEN: 16%
UNPROFITABLE: 26%

26%

MSS COMMENTARY:
MEMBERSHIP SALES, ANCILLARY SALES AND RETENTION GREATLY IMPROVED.
FINANCIAL IMPROVEMENT ACCOMPANIED BY SUCH A HIGH RATIO OF
BREAKEVEN/UNPROFITABILITY MAY INDICATE KEY CLUBS NOT YET MATURE.
40%+ OF CLUBS IN THIS SEGMENT AT BREAKEVEN OR LOSS OPERATIONAL
STATUS NEGATIVE INDICATIONS FOR 2ND HALF OF 2011.
HUGE UNBUNDLING IN THIS SEGMENT IS IT WORKING?

14

Price Points: Low Price (under $30 monthly)
PROFITABLE: 71%
BREAKEVEN: 12%
UNPROFITABLE: 17%

MSS COMMENTARY:
FOLLOWING FOUR (4) YEARS OF SURVEYS, IT S BECOMING CLEAR THAT LOW
PRICE IS UNDER $30 MONTHLY FOR A SINGLE MEMBERSHIP. ANOTHER
CATEGORY BARGAIN PRICE UNDER $20 MONTHLY), MIGHT BE
WARRANTED.
NUMBERS SPEAK FOR THEMSELVES, BUT THERE S STILL NEARLY 1/3 IN THIS
PRICE POINT OPERATING WITH NO PROFITS.
EVEN BETTER GROWTH IN MEMBERSHIP SALES AND/OR ATTENTION TO
ANCILLARY SALES MAY BE NECESSARY, EXCEPT FOR HIGH-‐VOLUME BARGAIN
PRICE PLAYERS.

15

Price Points: Moderate Price ($30-‐$49 monthly)
PROFITABLE: 70%
BREAKEVEN: 15%
UNPROFITABLE: 15%

MSS COMMENTARY:
DITTO COMMENTARY ABOUT 4 YEARS OF SURVEYS MODERATE PRICE IS
ESTABLISHING ITSELF IN THIS RANGE FOR A SINGLE MEMBERSHIP.
NUMBERS HAVE IMPROVED SINCE THIS TIME LAST YEAR, BUT THERE S STILL
NEARLY 1/3 IN THIS PRICE POINT OPERATING WITH NO PROFITS.
ATTENTION TO ANCILLARY SALES AND STRONGER RETENTION IS KEY FOR THIS
PRICE POINT SEGMENT.

16

Price Points: High Price ($50-‐$69 monthly)
PROFITABLE: 68%
BREAKEVEN: 16%
UNPROFITABLE: 16%

MSS COMMENTARY:
IGH PRICE IS ESTABLISHING ITSELF AT LOWER GENERAL PRICE RANGES
THAN HAS HISTORICALLY BEEN TRUE FOR THIS SEGMENT .
THERE S 1/3 OF CLUBS IN THIS PRICE POINT OPERATING WITH NO PROFITS.
GROWTH IN ANCILLARY SALES AND RETENTION IS HELPING WITH FINANCIAL
IMPROVEMENT VS. THIS TIME LAST YEAR.

17

Price Points: Luxury Price ($70+ monthly)
PROFITABLE: 84%
BREAKEVEN: 8%
UNPROFITABLE: 8%

MSS COMMENTARY:
VE NAMED A NEW CATEGORY FOR THIS SEGMENT LUXURY PRICE
BEST-‐PERFORMING PRICE POINT SEGMENT AT PRESENT IN THE INDUSTRY
(OTHER THAN BARGAIN-‐PRICERS).
NUMBERS IN PROFITABILITY, INCREASED MEMBERSHIP SALES, ANCILLARY
SALES AND RETENTION POINT TO RENEWED STRENGTH IN THIS PRICE POINT
SEGMENT.
BREAKEVEN AND UNPROFITABILITY NUMBERS IN THIS SEGMENT ARE MAINLY
DUE TO REPORTS FROM NOT-‐FOR-‐PROFITS IN THIS PRICE POINT CATEGORY.

18

Memberships: 4,000+ members
PROFITABLE: 86%
BREAKEVEN: 7%
UNPROFITABLE: 7%

MSS COMMENTARY:
NOTHING TO BE SAID BEYOND VERY STRONG SEGMENT

19

Memberships: 3,000-‐3,999 members
PROFITABLE: 67%
BREAKEVEN: 11%
UNPROFITABLE: 22%

MSS COMMENTARY:
GENERALLY DECENT NUMBERS OVERALL IN THIS SEGMENT WITH INCREASES IN
FINANCIAL IMPROVEMENT A REAL POSITIVE.
TOO MANY BREAKEVENS AND UNPROFITABLES IN THIS SEGMENT (33%).
INTENSE COMPETITION ENTERING INTO THIS SEGMENT AND IT WILL
ESCALATE.
LOOKS LIKE A LOT OF CLUBS IN THIS SEGMENT NEED TO MOVE THEIR
MEMBERSHIP NUMBERS TO 4,000+ TO ACHIEVE COMFORTABILITY.

20

PROFITABLE: 84%
BREAKEVEN: 8%
UNPROFITABLE: 8%

MSS COMMENTARY:
OVERALL GOOD NUMBERS IMPROVEMENT ACROSS THE BOARD IN THIS
SEGMENT.
PERCENTAGE OF CLUBS WITH NO POSITIVE CHANGE IN MEMBER RETENTION IS
A BIT OF A RED FLAG ALONG WITH SAME PERCENTAGE IN NO FINANCIAL
IMPROVEMENT.

21

PROFITABLE: 78%
BREAKEVEN: 22%
HAVE YOU UNBUNDLED?: 0

MSS COMMENTARY:
A SEGMENT THAT NEEDS STRONG IMPROVEMENT IN MEMBERSHIP SALES AND
ANCILLARY SALES.
RETENTION IMPROVEMENT AND FINANCIAL PERFORMANCE IMPROVEMENT
ARE POSITIVE INDICATORS.
THE PERCEPTION OF COMPETITION MAY BE INACCURATE FROM THOSE
REPORTING IN THIS SEGMENT.

22

PROFITABLE: 80%
BREAKEVEN: 20%

MSS COMMENTARY:
VERY STRONG NUMBERS IMPROVEMENT ACROSS THE BOARD IN
PROFITABILITY, INCREASED MEMBERSHIP SALES, ANCILLARY SALES AND
RETENTION POINT TO RENEWED STRENGTH IN THIS SEGMENT.
IT IS POSSIBLE THAT THESE ARE 10,000 TO 12,000 FT2 OPERATORS WHO
ARE LEARNING TO MAXIMIZE SALES AND SERVICE CUSTOMERS.

23

PROFITABLE: 58%
BREAKEVEN: 28%
UNPROFITABLE: 14%

MSS COMMENTARY:
WHILE MEMBERSHIP SALES, ANCILLARY SALES AND RETENTION ARE
STRONGLY IMPROVED IN THIS SEGMENT GENERALLY, THERE IS FAR TOO HIGH
A PERCENTAGE (42%) OF OPERATORS WITH NO PROFITABILITY.
THIS SEGMENT SUFFERED ONE OF THE WORST DOWNTURNS ON AVERAGE IN
IMPROVED FINANCIAL PERFORMANCE IN THE FIRST HALF OF NOT A
GOOD INDICATOR.
THIS IS A SEGMENT THAT BEARS CLOSE OBSERVATION FOR THE SECOND HALF
OF THE YEAR.

24

Memberships: 500-‐999 members
PROFITABLE: 62%
BREAKEVEN: 13%
UNPROFITABLE: 25%

MSS COMMENTARY:
THIS SEGMENT HAS DONE ONLY ONE THING REALLY WELL, AND THAT IS TO
IMPROVE MEMBERSHIP SALES.
IT S ONE OF THE WORST-‐LOOKING SEGMENTS IN IMPROVEMENT IN
PROFITABILITY AND ANCILLARY SALES.
MEMBERSHIP RETENTION IS AN ISSUE FOR 1/3 OF CLUBS IN THIS SEGMENT.
NEARLY 40% OF CLUBS ARE OPERATING WITH NO PROFIT A NEGATIVE
INDICATOR FOR THE 2ND HALF OF THE YEAR.
COMPETITION IS INTENSE AND INCREASING FOR THIS SEGMENT IT BEARS
CLOSE WATCHING.

25

Memberships: under 500 members
PROFITABLE: 44%
BREAKEVEN: 25%
UNPROFITABLE: 31%

MSS COMMENTARY:
THIS SEGMENT HAS IMPROVED FINANCIALLY, BUT FROM WHAT?
IT S THE WORST-‐LOOKING SEGMENT FOR PROFITABILITY OVER HALF OF
CLUBS ARE OPERATING WITH NO PROFITS.
MEMBERSHIP RETENTION IS A HUGE ISSUE FOR 40%+ OF CLUBS IN THIS
SEGMENT AND UNBUNDLING MAY NOT HAVE WORKED IN MOST CLUBS IN
THIS SEGMENT.
THE PERCEPTION OF COMPETITION IN THIS SEGMENT IS INACCURATE.
THIS IS A SEGMENT THAT HAS DRAMATICALLY TURNED DOWN IN JUST THE
LAST 12 MONTHS AND MAY BE IN REAL TROUBLE!

26

PROFITABLE: 67%

UNPROFITABLE: 33%





MSS COMMENTARY:
VERY LIMITED RESPONSES IN THIS SEGMENT (LESS THAN 3% OF OVERALL
SURVEY RESPONSES HARD TO EVALUATE AT THIS POINT.
PERCEPTION OF COMPETITION IS PROBABLY ACCURATE, BECAUSE THESE
PLAYERS ARE PERSONAL TRAINING AND GROUP TRAINING STUDIOS. THEY
ARE, IN GENERAL , DOING AN EXCELLENT JOB OF SALES INCREASES AND
TAKING CARE OF A VERY LIMITED NUMBER OF CUSTOMERS.
SOME PLAYERS, HOWEVER, ARE NOT DOING WELL AT ALL (33%).

27

Common attributes of high-‐profit clubs (20%+)
*** MEMBERSHIP SALES UP: 87%

**** ANCILLARY SALES UP: 100%

*** MEMBERSHIP RETENTION BETTER: 87%


**** DOING FINANCIALLY BETTER 6 MO. 2011 VS. 6 MO. 2010: 100%


MSS COMMENTARY:
THE ABOVE ILLUSTRATES CLEARLY WHAT IT TAKES IN ORGANIZATIONAL,
MANAGEMENT AND MARKETING SKILLS TO OPERATE AT HIGH-‐PROFIT LEVELS.

28

Common attributes of strong-‐profit clubs (15-‐19.9%)
*** MEMBERSHIP SALES UP: 82%

*** ANCILLARY SALES UP: 82%



**** DOING FINANCIALLY BETTER 6 MO. 2011 VS. 6 MO. 2010: 91%


MSS COMMENTARY:
OBVIOUSLY, MANAGEMENT, MARKETING AND ORGANIZATIONAL SKILLS ARE
EVIDENT IN THESE STRONG-‐PROFIT CLUBS.
EVEN THOUGH THERE IS EVIDENCE OF HIGHLY-‐INCREASED COMPETITION,
THESE CLUBS KEEP DEVELOPING DOUBLE-‐DIGIT PROFIT MARGINS!
INTERESTING THAT PERHAPS ATTENTION TO RETENTION COULD TAKE THIS
SEGMENT UP TO THE HIGH-‐PROFIT LEVEL.

29

Common attributes of good-‐profit clubs (10-‐14.9%)
** MEMBERSHIP SALES UP: 79%

** ANCILLARY SALES UP: 79%



** DOING FINANCIALLY BETTER 6 MO. 2011 VS. 6 MO. 2010: 71%


MSS COMMENTARY:
GOOD-‐PROFIT CLUBS ARE STRONG ORGANIZATIONALLY, MANAGEMENT-‐WISE,
AND HAVE MORE THAN ADEQUATE MARKETING SKILLS.
ATTENTION TO RETENTION WOULD HELP CLUBS IN THIS SEGMENT MOVE UP
TO THE STRONG-‐PROFIT LEVEL.

30

Breakeven/money-‐losing clubs: what common attributes?





MSS COMMENTARY:
HERE WE SEE EVIDENCE OF WHAT DOESN T WORK. IF YOU WANT TO
GUARANTEE NO-‐PROFIT BUSINESSES, NEGLECT ATTENTION TO MEMBERSHIP
AND ANCILLARY SALES.
IMPROVED MARKETING SKILLS ARE AN ABSOLUTE NECESSITY FOR THIS
SEGMENT.
THE GENERAL LACK OF FINANCIAL IMPROVEMENT INDICATES THAT CLUBS IN
THIS CONDITION (ABOVE) WILL BE THE ONES TO LIKELY CLOSE THEIR DOORS
WITHIN THE NEXT 12 MONTHS.

31

M i chael S cott S cudder
FITNESS BUSINESS COUNCIL

Comments from FITNESS BUSINESS RADIO

WELLNESS BUSINESS COUNCIL (Sept. 11)

Michael
575-‐751-‐4220

ms s @fitnessbusinesscouncil.com

www.michaelscottscudder.com

MEMBERSHIP PRICES: AVERAGE AND MEDIAN MONTHLY PRICES ARE UP FROM BOTH 1ST HALF 2010 AND 1ST QUARTER 2011. POSITIVE.
INITIATION FEES: AVERAGE AND MEDIAN COLLECTED INITIATION FEES ARE DOWN SLIGHTLY FROM BOTH 1ST HALF 2010 AND 1ST QUARTER 2011. NEUTRAL.
MEMBERSHIP SALES ARE UP SUBSTANTIALLY FROM BOTH 1ST HALF 2010 AND 1ST QUARTER 2011. VERY POSITIVE.
RETENTION IMPROVED IN MOST SEGMENTS FROM REPORTS IN BOTH 1ST HALF 2010 AND 1ST QUARTER 2011. POSITIVE.
ANCILLARY INCOME IMPROVED IN MOST SEGMENTS FROM REPORTS IN BOTH 1ST HALF 2010 AND 1ST QUARTER 2011. POSITIVE.
NET PROFITS WERE UP ONLY SLIGHTLY VERSUS 1ST HALF 2010, BUT SUBSTANTIALLY VERSUS 1ST QUARTER 2011. VERY POSITIVE.
UNBUNDLING OR A LA CARTING MEMBERSHIPS IN ON THE INCREASE OF CLUBS REPORTED APPLYING THESE METHODS IN THE 1ST HALF 2011.
NEUTRAL.
SENTIMENT: ONLY 27% OF RESPONDENTS THINK PRICES WILL GO LOWER IF ECONOMIC CONDITIONS STAY THE SAME FOR THE NEXT 12 MONTHS. NEUTRAL.
CONFIDENCE: 80% OF RESPONDENTS BELIEVE THAT OUR INDUSTRY WILL EITHER STAY ABOUT THE SAME OR SLIGHTLY IMPROVE WITHIN THE NEXT YEAR.
POSITIVE.
PRICING CONFIDENCE: 66% OF RESPONDENTS THINK THAT MEMBERSHIP PRICES WILL GENERALLY CONTINUE TO DECREASE. POSSIBLE NEGATIVE.
PROFIT CONFIDENCE: 76% OF RESPONDENTS BELIEVE THAT OUR INDUSTRY WILL BE IN BETTER SHAPE BY 2014. HOWEVER, ONLY 5% BELIEVE THAT PROFIT
MARGINS WILL RETURN TO PRE-‐RECESSION LEVELS. 7% BELIEVE THAT THE INDUSTRY WILL BE WORSE OFF. 17% BELIEVE IT WILL BE ABOUT THE SAME AS IT IS
AT PRESENT. 71% THINK THAT IT WILL BE IN BETTER SHAPE, BUT THAT PROFIT MARGINS WILL NOT RETURN TO PRE-‐RECESSION LEVELS. NEGATIVE.

SIX (6) POSITIVE THREE (3) NEUTRAL AND ONLY TWO NEGATIVE INDICATORS POINT OUT THE EMERGING RECOVERY OF THE FITNESS FACILITY INDUSTRY FOLLOWING
THE CONSISTENTLY-‐CHALLENGING YEARS OF 2008, 2009, AND 2010. WHILE MANY BUSINESS CLOSINGS EVIDENCED THAT THE INDUSTRY IS NOT RECESSION-‐PROOF AND
LIKELY MANY MORE CLOSINGS ARE PROBABLY YET TO OCCUR, OVERALL THE NORTH AMERICAN FITNESS BUSINESS APPEARS TO HAVE TURNED THE CORNER.

32

Fitness Facilities Survey Results For First Half Of 2011

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Ähnlich wie Fitness Facilities Survey Results For First Half Of 2011

Ähnlich wie Fitness Facilities Survey Results For First Half Of 2011 (20)

Mehr von Bryan K. O'Rourke

Mehr von Bryan K. O'Rourke (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Fitness Facilities Survey Results For First Half Of 2011